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Fw: US Benefits - FSA Plan Changes



From: A Message from NoSticWall HR <http://www.noSticwall.com/~A_Message_from_noSticwall_HR>
Sent: Wednesday, February 10, 2021 11:44 AM
To: A Message from noSticwall HR <A_Message_from_noSticwall_HR@xxxxxxxxxxxxx>
Subject: US Benefits - FSA Plan Changes

Important Benefits Information: FSA Plan Changes

Healthcare and Dependent Care FSA

Due to recent legislation*, the following plan change applies to both the Healthcare FSA (including Limited Purpose FSA) and Dependent Care FSA. This change is effective January 1, 2021 and will remain in effect as noted below.

You will now be able to carry over 100% of unused balance

  • In the past, the Healthcare FSA allowed up to $550 (as indexed for 2020) of unused funds to carry over to use in the following year; any excess balance would be forfeited. The Dependent Care FSA did not allow a balance carry over.

  • Due to the recent Act, the cap on the carryover amount has been removed. 100% of unused Healthcare and Dependent Care FSA balances may carry over from the plan year ending in 2020 to the plan year ending in 2021 and from the plan year ending in 2021 to 2022 plan year.

  • Carrying over a balance does not affect your enrollment for a subsequent year. You will still be allowed to contribute up to the maximum contribution limit set by the IRS.

Note that if you carry over a Healthcare FSA balance, you will not be eligible to contribute to a Health Savings Account (HSA) during the extended carryover period, unless you were participating in the Limited Purpose FSA.

EXAMPLE

Maria enrolled in the Healthcare FSA for 2020. She had $700 left in her account at the end of the year. She is able to carry over the entire balance to use in 2021. Maria expects higher healthcare expenses in the coming year, so she elected to contribute $2,750 to her FSA for 2021, for a total of $3,450 in her account. If she does not use that entire amount in 2021, she will be allowed to carry over all of her remaining balance to use in 2022.

If you have questions, please reach out to our Benefit Advocate at http://www.alliant.com/~nosticwall.

*To provide pandemic relief, recent federal legislation (the Consolidated Appropriations Act of 2021) included allowances for employers to make optional changes to Flexible Spending Account (FSA) rules. noSticwall is allowing the above change to our Healthcare and Dependent Care FSAs.

This email constitutes a Summary of Material Modifications (SMM) to the noSticwall Health and Welfare Benefit Plan. This is merely a summary of the most important changes to the Plan and information contained in the Summary Plan Description (“SPD”) previously provided to you. It supplements and amends that SPD so you should retain a copy of this document with your copy of the SPD. If you have any questions, contact the Administrator. If there is any discrepancy between the terms of the Plan, as modified, and this Summary of Material Modifications, the provisions of the Plan will control.

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Important Benefits Information: FSA Plan Changes

Healthcare and Dependent Care FSA

Due to recent legislation*, the following plan change applies to both the Healthcare FSA (including Limited Purpose FSA) and Dependent Care FSA. This change is effective January 1, 2021 and will remain in effect as noted below.

You will now be able to carry over 100% of unused balance

  • In the past, the Healthcare FSA allowed up to $550 (as indexed for 2020) of unused funds to carry over to use in the following year; any excess balance would be forfeited. The Dependent Care FSA did not allow a balance carry over.

  • Due to the recent Act, the cap on the carryover amount has been removed. 100% of unused Healthcare and Dependent Care FSA balances may carry over from the plan year ending in 2020 to the plan year ending in 2021 and from the plan year ending in 2021 to 2022 plan year.

  • Carrying over a balance does not affect your enrollment for a subsequent year. You will still be allowed to contribute up to the maximum contribution limit set by the IRS.

Note that if you carry over a Healthcare FSA balance, you will not be eligible to contribute to a Health Savings Account (HSA) during the extended carryover period, unless you were participating in the Limited Purpose FSA.

EXAMPLE

Maria enrolled in the Healthcare FSA for 2020. She had $700 left in her account at the end of the year. She is able to carry over the entire balance to use in 2021. Maria expects higher healthcare expenses in the coming year, so she elected to contribute $2,750 to her FSA for 2021, for a total of $3,450 in her account. If she does not use that entire amount in 2021, she will be allowed to carry over all of her remaining balance to use in 2022.

If you have questions, please reach out to our Benefit Advocate at http://www.alliant.com/~nosticwall.

*To provide pandemic relief, recent federal legislation (the Consolidated Appropriations Act of 2021) included allowances for employers to make optional changes to Flexible Spending Account (FSA) rules. noSticwall is allowing the above change to our Healthcare and Dependent Care FSAs.

This email constitutes a Summary of Material Modifications (SMM) to the noSticwall Health and Welfare Benefit Plan. This is merely a summary of the most important changes to the Plan and information contained in the Summary Plan Description (“SPD”) previously provided to you. It supplements and amends that SPD so you should retain a copy of this document with your copy of the SPD. If you have any questions, contact the Administrator. If there is any discrepancy between the terms of the Plan, as modified, and this Summary of Material Modifications, the provisions of the Plan will control.

 


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